REVISTA ANAIS BRASILEIROS DE ESTUDOS TURÍSTICOS / ABET (e-ISSN 2238-2925) ARTIGO CONCEITUAL / CONCEPTUAL PAPER / ARTÍCULO CONCEPTUAL

TOURISM INDUSTRY IN RUSSIA AND GLOBAL COVID-19 PANDEMIC: THREATS, COUNTERACTIONS, TRENDS

Oleg E. Afanasiev* & Alexandra V. Afanasieva** ______Abstract The present paper is dedicated to COVID-19 pandemic impact that manifested itself around the world since the end of 2019 and significantly affected the tourism and hospitality industry. In Russia and in the world, tourism is among industries the most affected by the consequences of restrictions and anti-epidemiological measures against COVID-19. The article divides the examples of mechanisms for overcoming the epidemic consequences in tourism, developed by different states and in Russia, in 9 groups (categories), and considers them in a comparative aspect. COVID-19 exacerbated relationship problems between two main subjects of the tourism market - tour operators and travel agents. Numerous mechanisms of government supporting Russian tourism industry do not work to the full and are not effective enough. The article discusses these problems, highlights the main trends and prospects of the tourism industry in Russia and in the world, and tries to outline the contours of the "post-Сovid" future of the tourism sector. The industry is in deep crisis, but at the same time, it expects new breakthrough ideas and technologies, creative solutions and non-standard proposals. Probably, the tourism projects, formed on these foundations and mechanisms, will become new drivers of industry growth after the end of the pandemic.

Key words: Tourism industry; COVID-19 pandemic impact on tourism; Tourism industry in Russia; Global tourism crisis; Trends and measures to supporting subjects of the tourism market.

INDÚSTRIA DO TURISMO NA RÚSSIA E NA PANDEMIA GLOBAL DA COVID-19: AMEAÇAS, CONTRA-AÇÕES, TENDÊNCIAS ______Resumo O presente documento é dedicado ao impacto pandêmico da COVID-19 que se manifestou em todo o mundo desde o final de 2019 e afetou significativamente a indústria do turismo e da hospitalidade. Na Rússia e no mundo, o turismo está entre as indústrias mais afetadas pelas conseqüências das restrições e medidas antiepidemiológicas contra a COVID-19. O artigo divide os exemplos de mecanismos para superar as conseqüências da epidemia no turismo, desenvolvidos por diferentes estados e na Rússia, em 9 grupos (categorias), e os considera em um aspecto comparativo. COVID-19 exacerbou os problemas de relacionamento entre dois temas principais do mercado turístico - operadores turísticos e agentes de viagens. Numerosos mecanismos de apoio governamental à indústria turística russa não funcionam plenamente e não são suficientemente eficazes. O artigo discute esses problemas, destaca as principais tendências e perspectivas da indústria do turismo na Rússia e no mundo, e tenta delinear os contornos do futuro "pósСovid" do setor de turismo. A indústria está em profunda crise, mas ao mesmo tempo, espera novas idéias e tecnologias inovadoras, soluções criativas e propostas não-padronizadas. Provavelmente, os projetos turísticos, formados sobre estas bases e mecanismos, se tornarão novos motores de crescimento da indústria após o fim da pandemia.

Palavras-chave: Indústria turística; impacto da pandemia COVID-19 no turismo; indústria turística na Rússia; crise global do turismo; tendências e medidas de apoio aos temas do mercado turístico.

LA INDUSTRIA DEL TURISMO EN RUSIA Y LA PANDEMIA MUNDIAL DE COVID-19: AMENAZAS, CONTRAPARTIDAS Y TENDENCIAS ______Resumen El presente artículo está dedicado al impacto de la pandemia de COVID-19 que se manifestó en todo el mundo desde finales de 2019 y afectó significativamente a la industria del turismo y la hostelería. En Rusia y en el mundo, el turismo se encuentra entre las industrias más afectadas por las consecuencias de las restricciones y las medidas antiepidemiológicas contra el COVID-19. El artículo divide los ejemplos de mecanismos para superar las consecuencias de la epidemia en el turismo, desarrollados por diferentes estados y en Rusia, en 9 grupos (categorías), y los considera en un aspecto comparativo. COVID-19 exacerbó los problemas de relación entre dos sujetos principales del mercado turístico: los operadores turísticos y las agencias de viajes. Numerosos mecanismos de apoyo del gobierno a la industria turística rusa no funcionan plenamente y no son lo suficientemente eficaces. El artículo analiza estos problemas, destaca las principales tendencias y perspectivas de la industria turística en Rusia y en el mundo, e intenta esbozar los contornos del futuro "post- Сovid" del sector turístico. La industria se encuentra en una profunda crisis, pero al mismo tiempo, espera nuevas ideas y tecnologías de vanguardia, soluciones creativas y propuestas atípicas. Probablemente, los proyectos turísticos, formados sobre estas bases y mecanismos, se convertirán en nuevos motores del crecimiento de la industria tras el fin de la pandemia.

Palabras clave: Industria turística; Impacto de la pandemia COVID-19 en el turismo; Industria turística en Rusia; Crisis turística mundial; Tendencias y medidas de apoyo a los sujetos del mercado turístico.

* PhD of Geographical Sciences (Dr.Sc.) / T. Shevchenko Kiiv National University (Ukraine, 2013). PhD of Geographical Sciences / T. Shevchenko Kiiv National University (Ukraine, 2007). Master in Geographical Sciences / O. Honchar Dnipropetrovsk National University (Ukraine, 2002). Degree in Geography / O. Honchar Dnipropetrovsk National University (Ukraine, 2001). Professor at Licenciada por Creative Commons Russian State University of Tourism and Service (Russia, Moscow). Chief Editor of Service and Tourism: Current Challenges and 4.0 / Internacional Services in Russia and Abroad / ORCID iD: http://orcid.org/0000-0003-3904-7028 / CV: https://www.spst-journal.org/afanasiev [ CC BY 4.0 [email protected] ] ** PhD of Geographical Sciences / T. Shevchenko Kiiv National University (Ukraine, 2009). Master in Geographical Sciences / O. Honchar Dnipropetrovsk National University (Ukraine, 2004). Degree in Tourism and Local Lore Study / O. Honchar Dnipropetrovsk National University (Ukraine, 2003). Associate Professor at Russian State University of Tourism and Service (Russia, Moscow). Executive redactor of Publishing house of Russian State University of Tourism and Service. / ORCID iD: http://orcid.org/0000-0002- 2331-4032 [ [email protected] ] 1 Rev. Anais Bras. de Est. Tur./ ABET, Juiz de Fora (Brasil), e-ISSN 2238-2925, v.11, n. único, pp.1 – 16, Jan./ Dez., 2021

TOURISM INDUSTRY IN RUSSIA AND GLOBAL COVID-19 PANDEMIC: THREATS, COUNTERACTIONS, TRENDS Oleg E. Afanasiev & Alexandra V. Afanasieva

1 INTRODUCTION nations mushrooming through the world. At the same time, some scholars alert on the destructive nature of The tourism industry remains one of the tourism in the global ecology paving the ways for the preferable forms of leisure of modern civilization. rise of unparallel viruses. Tourists more often are moved by the quest of The modern tourism industry as well as the high authentic (frenetic) experiences in others they look for levels of mobilities, without mentioning the over- heritage-related sites to consume. We live in a world crowding which seems to be characteristic of cities is where travelling equates to a global right. In other fertile ground for the dissemination of a lethal virus words, the tourism industry has successfully adapted to (Hilsenrath, 2020). To set an example, In Russia, the countless culture, geographies and landscapes sector employs than four million people (5.6% of total spanning through different nations and economies employment). At the same time, according to the data worldwide. for 2019, tourism accounted for 5% of the country's Tourism is not only one of the fastest-growing and economy, and the contribution to GDP was 5.5 trillion most profitable sectors of the economy both globally rubles (SIA, 2020). and nationally, but also a popular form of leisure and At the same time, it was tourism that turned out to recreation. The recent virus outbreak of COVID19 has be one of the most affected industries due to the pushed the industry into a difficult position (Korstanje economic consequences of Coronavirous infection, 2020). The strict lockdown imposed by governments including a drop in demand, restrictions on the work of associated with the borders and airspaces closures – organizations and institutions of a tourist profile. all they step oriented to stop the pandemic- placed the Tourism in Russia is one of the few service industries tourism industry in jeopardy. that provide significant export of services. The industry The tourism industry already has faced in the past in Russia is mainly represented by small and medium- similar states of emergencies or epidemics but nothing sized businesses, which do not have financial reserves than corrosive than COVID19. Hence, it is tempting to to fulfil financial obligations and keep workplaces. say that SARS outbreak which left more than 774 The present paper is dedicated to COVID-19 deceases in Asia (2003) affected negatively the pandemic impact that manifested itself around the economies of the region which will be whipped by many world since the end of 2019 and significantly affected other virus outbreaks in the years to come. Big the tourism and hospitality industry. In Russia and in the problems need a big solution. Policymakers and world, tourism is among industries the most affected by authorities made from tourism security issues a global the consequences of restrictions and anti- agenda investing in financial resources to develop epidemiological measures against COVID-19. At the programs and plans of contingency that placate the same time, the trend of forming deep deferred demand negative effects of pandemics in the developing is one of the main current tendencies. It can be economies (Afanasiev, Afanasieva, Sarancha, Oborin, illustrated through the case of Russia in the summer 2020). period of 2020, when trips within the country to coastal As the previous argument is given, the tourism tourist zones were allowed. industry has repeatedly experienced local shocks At the end of March 2020, the Russian authorities associated with epidemics, natural and man-made decided to close the borders, a self-isolation regime disasters. In this regard, theoretical, analytical and was introduced in the country, the severity of which practical experience has been accumulated in studying varied in the regions depending on the conditions and the consequences of their impact on the industry and the incidence rate. This regime, designed to dampen society as a whole, mechanisms have been developed the rise in morbidity in the country, negatively affected and implemented to overcome the negative the tourism industry as a whole, jeopardizing the consequences and restore tourism in the affected existence of small travel agency companies, and countries and regions (Afanasiev & al., 2020, Al-Tawfiq, causing losses to large players in the tourism market. J. A., Zumla, A., & Memish, Z. A., 2014, Bell, C., At the same time, the tourism industry was completely Devarajan, S., & Gersbach, H., 2003, Berry, M., unprepared for the emergence of such a global Gamieldien, J., & Fielding, B. C., 2015, Joo, H., negative phenomenon as a pandemic, and it led to Maskery, B. A., Berro, A. D., Rotz, L. D., Lee, Y. K., & many bankruptcies of market players. Brown, C. M., 2019, Maphanga, P. M., & Henama, U. The first section of the article is dedicated to S., 2019, Novelli, M., Burgess, L. G., Jones, A., Ritchie, overview scientific works on the impact of the COVID- B. W., 2018, Rassy, D., & Smith, R. D.,2013). 19 pandemic on the tourism industry for the For some reasons, there are no homogenous understanding the trends and research areas; the programs to be applied in all contexts. Above all in the second section is intended for describing the problems case of COVID19 which escaped to the controls of of tourism industry caused by restrictions connected

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TOURISM INDUSTRY IN RUSSIA AND GLOBAL COVID-19 PANDEMIC: THREATS, COUNTERACTIONS, TRENDS Oleg E. Afanasiev & Alexandra V. Afanasieva with COVID-19; in the third part we are going to explore Experts are increasingly expressing the opinion tourism industry support mechanisms in the Russia and that the pandemic and the ensuing crisis are the in the world and in the fourth part – to understand why beginning of a new round in the development of society, they don’t work in our country. The fifth part is dedicated the economy and, in particular, tourism. The current to revealing the trends and prospects in the tourism situation makes it possible to rethink the existing industry in Russia and the world. business models and approaches to the sale of tourism products, the principles of the functioning of tourist 2 ANALYSIS OF SCIENTIFIC PUBLICATIONS ON spaces, stimulates the development of innovations and RESEARCH ISSUES digitalization of the industry, works according to the principle of natural selection - "the strongest survives" The impact that the COVID-19 pandemic had on (in particular, we find such thoughts in Hall, C. M., Scott, the development of the tourism sector and society as a D., & Gössling, S., 2020, Davies, 2020; Gills, 2020; whole has led to an increased interest in this issue from Mair, 2020; Politico, 2020). McKinsey and Company both scientists and practitioners. (2020:1) see the pandemic not only as a global health In a short period since February 2020, an crisis, but also as a phenomenon of inevitable extensive volume of analytical articles, forecast restructuring of the global economic order, which is materials and practical recommendations for the reflected in the tourism industry today. recovery of the economy and tourism in the post-Covid At the same time, we can say that the COVID-19 period has been accumulated. Many publications today pandemic has exacerbated the discussion about the are devoted to assessing the consequences of the mechanisms and principles of sustainable COVID-19 pandemic impact on the tourism industry, as development of world tourism. Now we can see clearly well as studying the issues of industry sustainability, that there has always been more theory and talk in this state support mechanisms. than real practical mechanisms for ensuring this All publications on the impact of the COVID-19 sustainability for the industry. pandemic on the tourism industry can be roughly As a result, we can state that the tourism industry divided into the following groups: has not been able to form a single effective mechanism 1) Study of social risks and the impact of the of resilience in the face of the global threat and crisis, industry crisis caused by the pandemic on society, and tourism is forced to save the governments of all including the study of social costs (Richard T.R. Qiu, countries, providing various measures of support to the Jinah Park, ShiNa Li, Haiyan Song, 2020, Baum, T., & enterprises and people employed in it. Obviously, in the Hai, N. T. T, 2020, Higgins-Desbiolles, F., 2020 etc.); future it is necessary to develop concrete, and not 2) Crisis management and practical abstract, as today, criteria of sustainability for the recommendations for overcoming the industry, measured and, therefore, predictable, in crisis (approaches to the development of anti-crisis specific measurable indicators and parameters. strategies, characteristics and evaluation of specific The pandemic can be seen as an opportunity to measures applied by the government or the private rebuild and improve the productivity of the entire sector) (Yeh, S.-S.2020, Yang, Y., Zhang, H., & Chen, tourism system both at the macro level (Prayag, 2020) X. 2020, Filimonau, V., & De Coteau, D., 2020 etc.); and at the level of individual tourist centers, the survival 3) Issues of sustainability of the industry and of the most competitive tourism activities, and the individual destinations to challenges (Prayag, 2020, transformation of industries that are stagnant due to Prayag, G., Spector, S., Orchiston, C., & Chowdhury, quarantine restrictions. M., 2020, Korstanje, M., 2020, etc.); Many destinations that previously experienced 4) A country-specific approach to studying the overtourism (for example, Venice, Barcelona, Prague, development of the crisis caused by the COVID-19 etc.) are now rethinking their tourism systems and pandemic (for example, Gaffney C., & Eeckels B., 2020 approaches to managing the industry, paying more etc.); attention to the needs of residents. One can state the 5) General issues of assessing the COVID-19 fact that the phenomenon of overtourism has pandemic on the tourism industry, assessing the disappeared, which was unthinkable a year ago. consequences and prospects (Gössling, S., Scott, D., For example, the Barcelona authorities are & Hall, C. M, 2020, Hall, C. M., Scott, D., & Gössling, planning to "open" the residents of the city of the S., 2020, Davies, W., 2020, Gills, B. 2020, Mair, S., Rambla Boulevard, the main tourist artery, which the 2020, Pillai .S. K.B., Kulshreshtha. Sh. K. & Korstanje. locals have always bypassed due to the crowds of M., 2020; Faisal M., Dhusia d. K. 2021; A. César tourists and the high cost. The boulevard will be Dachary, A., M. Arnaiz Burne, S., & César Arnaiz, F. transformed into a cultural center, reduced rents for 2020, etc.). entrepreneurs to lower prices and attract residents. The

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TOURISM INDUSTRY IN RUSSIA AND GLOBAL COVID-19 PANDEMIC: THREATS, COUNTERACTIONS, TRENDS Oleg E. Afanasiev & Alexandra V. Afanasieva transformations will affect the famous Liceo Theater, end. It is difficult to plan activities in conditions of where instead of one hall in the building they will equip uncertainty, especially if the territory is entirely a multifunctional space not only for theatrical dependent on the tourism industry, if a financial safety performances, but also for exhibitions, concerts and cushion has not been created and tourism development performances. Changes towards greater openness to has occurred spontaneously. Many emerging market the local community will also affect the popular La beach destinations, such as Albania and Montenegro, Boqueria market and restaurants on the boulevard. have always been highly seasonal, with the bulk of In Venice, where the locals suffered from tourism revenue coming in the summer season. overtourism, and even organized the "funeral of That is why such destinations were the first to Venice", today they are out of work (in the tourist sector open the borders for tourists, which subsequently of the city before the pandemic, about 25 thousand influenced the formation of the pandemic second people were employed) and income from housing. The wave. Therefore, the views that everything will change almost complete shutdown of the industry made both for the better or that economic development, including residents and authorities think about how to make tourism, will become more sustainable are not a tourism more responsible and how to stop relying only foregone conclusion (Mair, 2020, Prayag, G. 2020), but on it (Momigliano A., 2020). questions of understanding the COVID-19 pandemic as There are proposals to reboot the industry and the an evolutionary impulse for industries are highly authorities propose in the future to restrict access for controversial and disputable. Let's consider and tourists to the historic city center using a system of characterize the main problems of the tourism industry quotas and booking (this will not apply to residents of in Russia in connection with the manifestations of the the city and hotel guests). The mayor Luigi Brunyaro COVID-19 pandemic consequences. said the city officials hope to "regulate tourist flows so that they are compatible with the daily life of Venetians" 3 PROBLEMS OF INTERACTION AMONG THE (Momigliano A., 2020). Besides, it is planned to develop SUBJECTS OF THE TOURISM MARKET other types of tourism to disperse tourists throughout the city (most of the tourists in Venice before the The covid-19 pandemic has identified and pandemic stayed in the historic part of the city and did exacerbated a number of critical issues across all not leave it during their entire stay). aspects of the industry. Lack of coordination between Experts propose to rely on educational, scientific tour operators and travel agents caused mistrusting to or business tourism through the formation of an organized tourism in tourists, and as a result, a drop in attractive business environment, as well as to promote industry revenues and crisis among travel agencies. Venice as a Christmas destination for wealthy foreign The pandemic also affected the activities of hotel tourists, preparing special cultural programs in enterprises, the catering sector, excursion affair, the conjunction with museums. In many countries, the system of training personnel in tourism, etc. Let us authorities are seeking to turn the pandemic into an consider in detail the problem of each of these areas. impetus for the development of domestic tourism through the introduction of mechanisms to stimulate 3.1 Problems of Relationship of Travel Agents and travel of their citizens within the country. Tour Operators On the other hand, any destination can be considered as a tourist territorial system, which has a The organization of the tourism sector is quite certain level of resistance to external crises (Prayag, complicated in Russia. Package tours are developed 2020). The sustainability potential depends on the by tour operators, while the function of selling a tour amount of financial resources in the industry and the package belongs to travel agencies. The main function destination, the success of pre-crisis management, the of a travel agent is the selection of a tour depending on sequence of development, diversification of tourism the needs of the tourist, advice on choosing a activities, the strength of the destination brand, the destination, communication between the tourist and the availability of qualified personnel, as well as the duration tour operator in case of the programs violation, the of the crisis period, the strength of the negative factor and tourist's refusal to travel and other circumstances. competent crisis management. And the examples listed Tour operator companies, which previously saw above are quite resilient socio-economic systems with in travel agents as reliable distribution channels for their a high margin of safety for them, even in a pandemic; a products, in recent years, have been trying to reach the stable deferred demand is formed. consumer of travel services directly, creating sales However, residents and authorities of not so functionality on their websites. That is, now a tourist stable destinations, representatives of the tourism does not need to contact a travel agent to purchase a industry see in a pandemic only a rapidly approaching tour. Travel agents are gradually losing their audience.

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TOURISM INDUSTRY IN RUSSIA AND GLOBAL COVID-19 PANDEMIC: THREATS, COUNTERACTIONS, TRENDS Oleg E. Afanasiev & Alexandra V. Afanasieva

The coronavirus pandemic has significantly of days had to pay extra for their stay on the remaining exacerbated the problems of relations between tour days and independently purchase a return ticket. operators and travel agents. The claims of tourists who A similar thing was observed in Cuba, which have purchased package tours are directed primarily to recently opened its borders for Russian tourists. Upon travel agents, while the latter transfer money from arrival, guests of the country must take a test for tourists to tour operators, leaving only a small COVID-19, and given the fact that people were afraid commission for themselves. of losing money for the tour, many went on a trip without Therefore, tourists, turning with legal claims to taking a test before the trip. And upon the fact of travel agents, as a rule, do not receive their satisfaction, identifying COVID tourists, the mechanism of their stay or the collection takes place from the travel agent, who in the country was the same - a two-week quarantine challenges the court decision in the future. Travel and additional payments for accommodation and a agents make the following claims to tour operators, return ticket. including in connection with the pandemic: At the same time, tourists first of all turned for help - Weak feedback, requests from travel agents to travel agents from whom they purchased tours, and after booking remain unanswered or an answer is given those - to tour operators who have representatives in within two to three days; the host country. However, due to the weak connection - Violation of the declared travel agent reward between the tour operator and the travel agent, the programs; chain of actions was cut off at some stage, and tourists - Changes in the tour program without agreement were left alone with their problems. with the travel agent and the tourist, which causes Given the inconsistency of actions to take tourists complaints from tourists; out of quarantined destinations in March 2020, such - Unclear mechanism for transferring tours or situations have aggravated the mistrust of tourists in refunds, violation of replacement conditions (for mass organized tourism, which in the near future will example, replacing a beach tour in Greece with a lead to an increase in the number of independent cheaper one in Turkey); tourists and a narrowing of the consumer market of tour - Travel agents did not receive consulting support operators and travel agents. In addition, in the near from tour operators during the quarantine restrictions future, tour operators will implement the postponed period in March-June 2020, in terms of interaction with tours (until the end of 2021), which, together with the tourists on the return or transfer of tours; above mentioned information will delay the industry - Travel agents and tour operators could not recovery for years. organize full-fledged cooperation for a joint rapid Companies faced not only the formation of a response to the challenges of coronavirus infection; serious cash gap due to the fact that large amounts of - An unclear mechanism for returning funds to a taxes were paid before the start of restrictive measures tourist in case of COVID-19 detection on the eve of the and there are prepayments all over the world, but also trip, most often the tour is canceled with large fines for with numerous demands from tourists to return the tourist. deposits for tours. Revenue of 95% companies in the The latter claim led to the fact that tourists, having tourism industry during the period of self-isolation fell to a positive test or even the first symptoms of the zero, and the depth of cancellation of bookings for tours disease, went on a trip, fearing to completely lose in Russia was 3-6 months (50-80%), for outbound money for an already paid tour. This largely led to the tourism - 100% with a booking depth of 4-7 months. spread of the infection. This problem was common for In addition, the crisis management of the industry tourists from many countries. is faced with the fact that the planning of activities is carried out in conditions of uncertainty - it is unclear 3.2 The Actions of the Host Parties how the morbidity statistics will increase and in which regions, what measures will be introduced by the The actions of the host parties have become a authorities to minimize this process, which destinations significant problem in the relationship between tour will be open to tourists and how long. operators and travel agencies. For example, there were For example, a long-term self-isolation regime in a lot of cases when tourists, arriving in Turkey, on the many regions of Russia ended at the end of June, at second or third day learned from the hotel that time popular inland beach destinations opened - administration that they had contacted a covid patient the southern coast of Crimea, the coast of the on a transfer bus. Such tourists were isolated in a room Krasnodar Territory and the Baltic Sea. Turkey, Cuba, to comply with a two-week quarantine, and many Abkhazia and a number of other countries have opened people whose tour was designed for a smaller number their borders for tourists from Russia.

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TOURISM INDUSTRY IN RUSSIA AND GLOBAL COVID-19 PANDEMIC: THREATS, COUNTERACTIONS, TRENDS Oleg E. Afanasiev & Alexandra V. Afanasieva

The restrictions were lifted almost at the popular sightseeing destinations - such as Moscow or beginning of the tourist season, and the tourism St. Petersburg was lifted last, when beach destinations business took off, but since September the incidence had been already receiving tourists. had increased sharply, which led to the resumption of The excursion business in Russia is represented restrictions, although not on a full scale. mainly by small businesses - the so-called individual Accordingly, representatives of the tourism entrepreneurs. Most often these are guides who work business are asking questions: should they wait for a "for themselves", whose main source of income is the new closure of borders and when, how long will excursions they conduct. Therefore, the ban on European countries be closed, will new quarantine excursions reduced the income of the guides to restrictions be introduced in Russia and to what extent? nothing, in fact, a large staff of workers in the excursion All these situations make it difficult to find ways out of a sphere ended up for a long period without money and crisis situation. without work. Some tour guides have tried to go online, 3.3 Functioning of the Hotel Sector conducting online tours and virtual walks, as well as educational lectures and master classes. But given that Another problem is the functioning of the hotel most of the income from the excursion sphere in sector. Firstly, the hotel enterprises themselves today popular destinations is formed by inbound tourists, are forced to spend funds on ensuring sanitary and such a step helped only temporarily stay “afloat” and hygienic safety measures (purchase masks, did not become a format for “restructuring” the model of antiseptics, etc.). There is a subsidy in the envisaged the excursion industry. measures of state support for the needs of the In museum institutions in Russia, the guides also enterprise to ensure sanitary and hygienic safety stopped their main activities for a while, but at the same conditions, but it is a one-time subsidy, and its volume time, the financing of the cultural sphere was carried out is not sufficient to cover the costs of hotels. in full, which allowed many state and municipal In addition, the industry has already suffered museums to keep the salaries of their employees, losses during the period of self-isolation in Russia and including the guides. still bears them due to a decrease in the number of inbound tourists. This led to a significant decrease in 3.5 Transportation and Catering Industry the load of collective accommodation facilities in Russia - during the period of self-isolation up to 0-3%. Many COVID-19 pandemic has negative impact on hotels are demanding a negative test for COVID-19, transportation and catering industry. The most affected that is why tourists are using alternative were small authentic cafes and restaurants, which, in accommodation. addition to food, created a special atmosphere, At popular domestic Russian resorts and beach representing thematic spaces (for example, recreating destinations, a large gray market for private housing the Russian life of the 19th century, the Soviet past, a has long been active. The owners of such apartments, fairytale atmosphere, etc.), and which attracted tourists as a rule, do not pay special attention to compliance not with their cuisine, but with the atmosphere. A lot of with measures to prevent the spread of infection, since these cafes and restaurants, whose concept was built they do not need certification. on an interesting idea, were special tourist attractions, Some hotels tried to offer self-isolation services but like many small businesses did not have the between March and June 2020, but this idea did not resources to maintain an idle mode for 3 months. This gain wide popularity among guests. In addition, many led to the closure of many of them. On the other hand, Russian families are cutting their expenses, and today public catering network points quickly reoriented to the they are choosing short trips with accommodation in delivery of their products, and thus overcame the crisis inexpensive accommodation facilities or apartments stage of self-isolation. Moreover, such enterprises with a kitchen in order to be able to cook their own food expanded their activities into the post-quarantine stage and not visit cafes and restaurants in destinations. All due to work on food delivery. this reduces both the income of the hotel industry in Russia and the income from tourism in the country's 3.6 River Transport and the River Cruise Industry tourist destinations. In the transport sector, river transport and the river 3.4 The Excursion Sphere of the Country cruise industry suffered the most. The reasons for that were the prolonged downtime of vehicles, as well as The excursion sphere of the country is also general negative trends in the industry, such as a undergoing a crisis stage. The ban on excursions in limited navigation period in Russia (mainly from May to

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TOURISM INDUSTRY IN RUSSIA AND GLOBAL COVID-19 PANDEMIC: THREATS, COUNTERACTIONS, TRENDS Oleg E. Afanasiev & Alexandra V. Afanasieva

October), a small number of passengers carried and contact with the teacher, difficulties in perceiving low profitability of the industry, low demand due to the lectures in the usual monologue format, and on the high cost of tickets, obsolescence of the river cruise other hand, in the difficulties of teachers adapting to the fleet and infrastructure, siltation of rivers and lack of distance format, inability or difficulties in transforming proper measures to clean them. In addition, the lecture material and using techniques for interacting industry in Russia reflects global trends in the cruise with the audience in an online format. industry, for which the consequences of the Technical difficulties are connected with the lack coronavirus crisis can be more serious and long-term of a high-quality Internet connection in some regions than for airline or travel companies in general. and settlements of the country, the peculiarities of During the epidemic, several cruise ships, educational platforms where the broadcast is delayed, including one operated by the Carnival Diamond which makes it impossible to conduct discussions, the Princess, became notorious for the quarantine teacher's limited choice of a convenient educational announced on them during the voyage and hundreds platform, the lack of adapted training systems for of people infected on board. The reputation of cruises students (for example, booking systems simulators are has been harmed by the often-spreading noroviruses available only in the computer labs of universities), on liners before, while the coronavirus epidemic is limited access to online libraries and repositories (for already strengthening tourists in the opinion that going example, subscription to Elsiver database resources in on a cruise can get sick and be trapped in the middle of Russian universities is carried out using a grant support an open water area. mechanism and is available only for the IP- addresses Another threat is that consumers of cruise of a specific university, which makes it impossible for products are dominated by older people, for example, employees and students to work with them from home), according to the International Association of Cruise etc. Lines, about a third of vacationers on sea cruises are On the other hand, there are positive examples of over 60 years old. Older people are predicted to be the COVID-19 pandemic impact on the educational more warier of cruises now, and they are not very industry in the field of tourism and hospitality in Russia. popular among young people. The combination of To minimize problems with access to educational these facts may well lead to the fact that the cruise resources, many Russian online repositories have market simply does not recover from the crisis. opened free access to their materials during quarantine. Representatives of the industry and the 3.7 Land and Air Transport leadership of specialized organizations, who previously, due to high employment, could not come to Land and air transport is being restored the universities and relay their experience to students, are fastest. Rail transportation is carried out by the large now actively involved in educational programs, state corporation Russian Railways (RZD) and its because thanks to online platforms they can conduct subsidiary RZD-tour. Airlines in Russia are also large events from home or office for students of both one and businesses, and with increased demand for several universities. Students can connect to transportation following the lifting of restrictions in late professional webinars and interact with industry May and June, as well as taking into account representatives. Moreover, the number of training government support, they were virtually unaffected, events held has increased significantly due to public although the pandemic was expected to hit air travel initiative and measures of state support for the industry. hardest. Russian airports Sheremetyevo and Domodedovo entered the top ten most visited in 2020, 3.9 Objects of Entertainment Tourism along with the airports of Turkey. It should be especially noted objects of 3.8 The Tourism Training Sector entertainment tourism. Theme parks and entertainment establishments operating in Russia have experienced Another challenge is the tourism training sector. a huge demand for their services after the lifting of The transfer of many training institutions to the distance quarantine measures. As an example, one can cite the format showed the imperfection of the distance learning theme park "Sochi-Park", which is popular among system. The problem has a psychological and Russian tourists. technological basis. Despite the high prices, in the summer season, The psychological aspect of the personnel after the lifting of quarantine restrictions, the park's training problem lies, on the one hand, in the workload approached the usual, which suggests that unwillingness of Russian students to study remotely, despite the crisis and restrictions, tourists form a their low motivation and self-organization, lack of close

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TOURISM INDUSTRY IN RUSSIA AND GLOBAL COVID-19 PANDEMIC: THREATS, COUNTERACTIONS, TRENDS Oleg E. Afanasiev & Alexandra V. Afanasieva deferred demand for popular tourist facilities and pandemic and the crisis, rent cuts or rental destinations. subsidies, grants and subsidies, investment Reducing income and cutting costs, as well as incentives, government loans with a very low time constraints, do not become a key factor influencing interest or without interest, credit holidays, debt the choice of a tourist destination. This fact is taken into restructuring, etc. account today by many governing bodies of the tourism 3. Prevention of layoffs and provision of additional sector for planning the post-visual development of the jobs – short-term compensation and salary industry and is expressed in a group of support subsidies, suspension of employee layoffs. measures related to the promotion of destinations and 4. Promoting future development: special support the formation of deferred demand. measures/ funds for strategic enterprises (for example, aircraft industry, tourism, hotel 4 TOURISM INDUSTRY SUPPORT MECHANISMS business, restaurant sector), consulting and information assistance to the tourism industry All mechanisms for supporting the tourism enterprises, measures of financial support in industry in a pandemic that are used today in world relation to high-tech and digital startups, practice can be divided into such groups: professional training and training of a personnel 1. Exemption from taxes/ fees/ fines – general reserve for the tourism industry on-line digital temporary and partial tax incentives, various competencies, conducting special trainings for types of tax deferral, postponement or companies in the tourism sector on crisis cancellation of contributions for health care and/ management. or social security, cancellation or suspension of 5. Development of domestic tourism: subsidized air navigation, airport taxes, tourist tax, residence domestic travel vouchers, discount coupons, tax, etc., extension of the deadlines for updating vouchers for the post-crisis period, financing of national registers of organizations, exemption marketing campaigns for the future, rebranding, from prosecution of enterprises experiencing promotion of the country in the domestic and serious difficulties; revision of lawsuits not subject foreign markets. to appeal, etc. 2. Providing and maintaining liquidity – deferral of In this regard, it seems appropriate to conduct a payments for utilities, reimbursement of expenses comparative description of measures to support incurred by event organizers whose events in tourism in Russia and abroad (table 1). 2020 were postponed or canceled due to the

Table1 – Comparative analysis of market entities support measures by the state: world and Russian practice. World practice Russian practice Financial assistance to businesses (subsidies, grants and interest-free loans for companies liquidity support) ▪ TurismodePortugal Portugal agency has established a line ▪ Subsidies for tour operators for the damage compensation related to of support amounting to €60 million for tourist micro- air transportation (3.5 billion Roubles have been allocated for recovery enterprises which have fallen into financial difficulties. of tour operators’ costs related to no return fares regarding air transportation, as well as organization of tourists transportation from ▪ In Portugal the government has approved state-guaranteed foreign countries with an unfavorable epidemiological situation). credit lines for companies by having allocated 600 million Euros to the catering sector, 900 million Euros –collective ▪ Access to the Personal Liability Fund (PLF) of a tour operator1 (a accommodation facilities. chance to use the accumulated funds of the PLF to return money to tourists). At present, the Federal law “On the basics of tourist activity in ▪ In the Republic of Korea small and medium-sized travel the Russian Federation” has been amended envisaging the use of the companies can be granted concessional collateral-free PLF funds of a tour operator for tourist payments in case of a failure of loans for a total of $8.1 million at a low-interest rate (1%). a tour operator to fulfill its obligations under the contract on the ▪ In Hong Kong about 1,350 tourist products have been implementation of a tourist product due to the decision taken by a granted financial support from the Anti-epidemic Fund under foreign country to restrict the entry of tourists into the country or the Programme of subsidizing of travel agents. Any travel emergence of a threat to tourist safety in a foreign country. agent meeting the criteria can be granted a lump-sum ▪ To provide an additional support to tour operators, a chance to subsidy – over $10 thousand. To receive the payments, postpone (defer) an annual contribution to the PLF for the year 2020 98% of all the travel agents licensed in Hong Kong have until April 15, 2021 is envisaged. been registered.

1Personal Liability Fund of a tour operator is established for payment of money to tourists in case of a tour operator’s failure to fulfill its obligations under the contract on the implementation of a tourist product due to emergencies or termination of a tourist operator’s activities. Specifics on the setting up and use of the Personal Liability Fund of a tour operator are established by law.

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▪ In Turkey an additional discount is granted following the air ▪ Tour operators’ fees in the outbound tourism industry to the Reserve flights renewal for travel agencies having powers to buy Fund of the Tour Pomoshch Association for the year 2020 have been group tickets with the discount. suspended ( the fee for the year 2020 will amount to 1 Rouble)2. ▪ The government of Canada has adopted an emergency ▪ The postponement of the accounting statements and industry reporting assistance and economic stimulus package amounting to submission, as well as the submission of data confirming a tour 107 billion Canadian dollars (75 billion US dollars) for operator’s accountability. providing assistance to Canadians experiencing financial ▪ Air companies reimbursement for outbound transportation of tourists. difficulties. Of them, 27 billion US dollars are aimed at direct support of Canadian workers and enterprises, another 55 ▪ Renewal of licenses and permits from 15.03.2020 until 31.12.2020. billion US dollars are granted through deferral of tax payments. ▪ The lump-sum subsidy granted on a non-reimbursable basis for partial compensation of grantees’ costs related to the activities on the prevention of a new coronavirus infection held in the year of 2020.

Tax holidays, benefits and deferrals

▪ In Turkey payments to Social Security Funds and VAT ▪ Loan and refinancing of loans at the reduced rate of 8.5% for individual deductions in different sectors, including travel agencies, entrepreneurs, micro-enterprises and small businesses. have been suspended for 6 months. Collection of an ▪ The deferral of payments under the contracts on the state property accommodation tax has been rescheduled for November lease concluded with small and medium-sized business entities. 2020. Besides, the Turkish authorities have suspended payments related to the hotel lease rights and profits share ▪ Companies doing business in the affected industries can receive a tax for 6 months. The VAT for the domestic air companies flights deferral or installment (advance payments) with deadlines in the year has been reduced from 18% to 1% within three months. of 2020 apart from the VAT. For companies from the affected industries no penalties regarding the already accumulated tax debts will be ▪ In Germany companies have been allowed to defer tax imposed, a ban to prohibit taking decisions on the suspension of payments until December 31, 2020. operations regarding accounts to secure the implementation of a ▪ In Portugal the deadlines for tax payments and submission decision on the enforcement of a tax, duty, insurance premium, of other declarations have been extended penalties and (or) a fine is issued. ▪ (for instance, the deadline for the corporate income tax of ▪ Ban on sanctions for untimely submission of documents: deadlines for Modelo 22 companies for the year of 2019 has been moved the submission of tax declarations have been extended for 3 months; from May 31,2020 to July 31, 2020. starting dates for tax audits have been rescheduled. ▪ A moratorium for routine inspections of small and medium-sized businesses until June 30, 2020 and for the entire year of 2021. The only exception is unscheduled inspections on the grounds of causing harm to life and health of citizens, natural and technogenic emergencies.

Cancellation of deductables for social security from employees’ salaries

▪ In the US tax payments for social security for employers and ▪ For companies and individual entrepreneurs the total amount of the self-employed have been postponed until January 1, insurance premiums has been reduced from 30 to 15% for a portion of 2021. salaries exceeding the minimum wage in the RF (12,130 Roubles). The rate of fees to the pension fund of Russia will amount to 10%, to ▪ In Spain for small and medium-sized enterprises not the Federal fund of mandatory health insurance – 5%. Fees to the dismissing employees requirements on payment of fees to Social Security Fund (on disability and maternity) are not paid. social security have been cancelled. The self-employed whose incomes have decreased by 75% and higher will be granted a subsidy and exempted from paying a tax for social security. ▪ In Sweden until June 30 employers’ fees for social security have been reduced, an old age pension fee is paid only.

Subsidizing of employees’ salaries for the prevention of dismissals and jobs creation

2TOUR POMOSHCH - Association is an alliance of tour operators in the outbound tourism industry aimed at providing emergency assistance to Russian tourists abroad due to a tour operator’s financial failure. For this purpose the Association sets up a reserve fund aimed at providing emergency assistance to tourists. The amount of annual fees to the reserve fund which are mandatory for payment by the Association members is determined by the Federal law. The government of the Russian Federation is entitled to reduce the fee amount to the Association reserve fund for the forthcoming fiscal year in case of a lack of payments from the reserve fund for the previous year (the Association site –https://www.tourpom.ru/). 9 Rev. Anais Bras. de Est. Tur./ ABET, Juiz de Fora (Brasil), e-ISSN 2238-2925, v.11, n. único, pp.1 – 16, Jan./ Dez., 2021

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▪ The government of Great Britain has launched a tourist ▪ Interest-free loans for payment of salaries. Lending to enterprises from destinations support scheme “Destination Management the affected industries for the payment of employees’ salaries will be Resilience Scheme”. It should retain the staff working with implemented by banks supported by the Central Bank. The loan customers and support communication of travel companies guarantee is ensured by the VEB’s guarantee (up to 75%). The loan with them. To finance companies on tourist destinations will be granted at a rate of 0% within the first 6 months and 4% – within marketing –Destination Management Organizations – the next 6 months. almost €1,5 million have been allocated. The travel ▪ SMEs entities (individual entrepreneurs and legal entities) doing companies can seek assistance to cover the costs for business in the affected industries will be paid 1 minimum wage keeping no more than two employees with the salary up to (12,130 Roubles) for each employee employed by the company €2,8 thousand for one employee per month, as well as providing that employment is kept at the level of no less than 90% from employers costs on insurance and pension fees within three the number available for April 1, 2020. The measure will be valid from months. May 18, 2020 until the end of June 2020. ▪ In Italy a mechanism for suspension of employees dismissals has been launched. ▪ In Australia subsidies for the support of interns and trainees’ salaries have been planned, besides the government will provide payments for keeping jobs (JobKeeper Payment) for enterprises entitled to it (including tourism industry enterprises), the turnover of which has decreased by more than 30%, if they have a turnover amounting to less than 1 billion US dollars, or by more than 50%, if they have a turnover amounting to more than 1 billion US dollars. After submission of applications the enterprises meeting the criteria will be allocated by the government 3,000 US dollars per month for one employee meeting the criteria within a maximum of 6 months.

Communication and marketing companies for the formation of a deferred demand and destinations promotion

▪ In the Republic of Korea the government is promoting ▪ The government of the RF has allocated 15 billion Roubles for the consumption by issuing discount coupons which can be program stimulating domestic tourism designed by the Rostourism – used for the compensation of tourism costs. the so-called tourist cashback for citizens taking tourist trips across the country. ▪ In Australia a campaign on the development of domestic tourism “Holiday Here This Year” has been relaunched. The ▪ The program stimulating domestic tourism involving the return of funds site offers a collection of marketing tools which can be used to tourists at the rate of 20% from the tours cost, including hotel by the tourism industry in order to restore the demand. accommodation and air ticket for any transport, or hotel accommodation. ▪ In Portugal communication campaigns targeted at tourists on the provision of information about the consumers rights ▪ The cashback program is valid for both tour operators customers and in times of crisis, advice on the protection of travelers, for independent travelers –not only a tour but also accommodation current restrictions and useful contacts are being separately can be bought. implemented. ▪ Participation of tourist market entities (tour operators, hotels and ▪ Subsidized domestic traveling certificates /discount others) in the program is voluntary. Thus, tourists are interested in coupons, vouchers for the post-crisis period in Iceland, the having a rest in their country, and market entities– in the program Republic of Korea, Turkey, the Czech Republic. participation as a promotion platform and motivated tourists are presented for them. ▪ Funding of marketing companies for the future, re-branding, promotion of the country on the domestic and foreign ▪ For destinations and enterprises a grant support amounting to up to 3 markets in such countries as Australia, Italy, Spain, Iceland, million Roubles from the Federal Agency for Tourism (Rostourism) is Portugal, the Republic of Korea, Hong Kong, Iceland, China, being provided on a competitive basis. Great Britain.

Creation of digital platforms-navigators consolidating information about the tourism industry and support measures to assist companies in taking managerial decisions

▪ The Federal State Centre for best practices in the tourism ▪ The Federal Agency for Tourism (Rostourism) posts actual information industry of Germany has launched a platform on monitoring about the coronavirus impact on the tourism industry on its site. the coronavirus impact on the industry. The navigator ▪ Stopcoronavirus.rf– official site on the spread and prevention of collects and posts information for travel companies, coronavirus in Russia. including data on specific industry measures adopted by the government, as well as the news and the situation analysis

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in the tourism industry worldwide. The site has a “trends ▪ Free access to online-tours of museums, exhibitions, theatrical plays barometer in the tourism sector” where business and cinema films on the portal kultura.rf expectations in the tourism industry are daily reflected.

Training for the tourism industry companies on the creation and promotion of new products, digital technologies

▪ In Colombia trainings for the tourism sector companies on ▪ At the state level a grant support for educational institutions for the the anti-crisis management, as well as online chats for conduct of training programs and a series of master classes and monitoring the situation in the industry and responding to webinars is provided. entrepreneurs’ requests have been launched. ▪ At the public level free educational webinars from business ▪ In Portugal scholarships for studies at the Institute for communities and industry-specific agencies on the anti-crisis Employment and Vocational Training of Portugal (IEFP) are management and distance work and others are conducted. granted. ▪ The Australian Tourism Export Council (ATEC) is conducting webinars for the industry representatives with ▪ information about the current situation and opportunities for receiving support for companies to retain ▪ business every Wednesday.

Use of infrastructure of the tourist sector in combating coronavirus

▪ Portugal, France, the US, Great Britain and Colombia are ▪ Not applied. providing collective accommodation facilities for doctors, law enforcement officials and supporting services staff combating coronavirus. For instance, the Hotel and Tourism Association of Colombia COTELCO has provided 5,6 thousand rooms of its 70 affiliated hotels in 22 municipalities for the coronavirus elimination needs of the government.

Assistance to citizens

▪ In Iceland levying of the tourist accommodation tax has been ▪ Assistance to the citizens of the RF who are abroad having travel suspended from April 1, 2020 until December 31, 2021.The documents for the return to the RF in the period from March 16 until payment of the above tax from January 1, 2020 until March May 31, will be provided. 31, 2020 has been postponed until February 5, 2022. ▪ A simplified form of the receipt of a sick leave certificate, an option to Residents of Iceland over the age of 18 years will receive complete a sick leave certificate in online format, disability benefits from the government holiday packages for a total of 1,5 increase. billion Iceland krones for traveling within the country. ▪ Social welfare benefits and allowances are extended automatically for ▪ In Turkey fines for passengers’ failure to show up on the 6 months– without additional certificates and personal presence. flight according to the air tickets issued before March 19 and the air tickets which could not be used in the period from ▪ Loan benefits and holidays. March 12 until April 12, 2020 will not be imposed. These tickets can be used within a year following the date of the air ▪ Cutting-edge vocational training. flights restrictions removal. ▪ Development of distance training programs. Source: own elaboration based on (1) Support measures for the tourism industry: international experience. Moscow: Agency for Strategic Initiatives, 2020. URL: https://old.asi.ru/library/tourism/125947/ and (2) Federal Agency for Tourism https://tourism.gov.ru/contents/covid-19/mery-podderzhky/ .

5 WHY DO THE MECHANISMS FOR SUPPORTING the country, and by distrust of tourists in outbound THE TOURISM INDUSTRY IN RUSSIA NOT WORK destinations. TO THE FULL EXTENT? Secondly, the mechanisms for assisting are not fully thought out, and there are many restrictions and First of all, many measures are designed mainly obstacles for entrepreneurs. For example, the for the period of self-isolation from March to June 2020, maximum loan amount for which the borrower can but the crisis in the industry in the subsequent stage is apply to the lender with a request to change the terms only getting worse by closed borders, rescheduled and conditions of the credit agreement (loan tours, stricter quarantine measures in certain regions of agreement) should not exceed 300,000 rubles, and the

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TOURISM INDUSTRY IN RUSSIA AND GLOBAL COVID-19 PANDEMIC: THREATS, COUNTERACTIONS, TRENDS Oleg E. Afanasiev & Alexandra V. Afanasieva enterprises that have debts more than this amount accommodation's sales (hotels) and are a powerful tool cannot claim this exemption. for promoting and informing tourists. Travel agents are The industry also does not approve of lending also not satisfied with the program, as this format measures for enterprises to pay employees' salaries, makes a tourist more independent in choosing, and because these loans will need to be paid back, and also does not provide with agent's commission. after a failed season and subsequent years of recovery, Although some tour operators have developed it is expected that the travel industry enterprises will mechanisms for encouraging travel agents who book have no funds to return these loans to credit tours for their tourists as part of the program. organizations. Rented property benefits apply only to However, more than 70,000 travelers have made municipal properties, but not all entrepreneurs rent use of the services of the representatives of the rooms in them. For example, many small travel domestic market during the first stage of the travel agencies rent rooms in shopping malls which are cashback program, according to the Federal tourism usually in a private property. Agency. The deferral of taxes and their cancellation in the In October, the Russian government extended the second quarter of 2020 is also criticized by industry program for the second stage, developing its terms and representatives because they have no funds to pay conditions. Now there is no minimum cost of the tour, taxes since only repayments took place during this and the minimum rest period is adjusted from two period. nights instead of four. The program itself will last almost The travel cash-back program has also obtained two months - from October 15 to December 5, and you widespread criticism in the industry. The chosen can book a tour for any date, the main thing is to be deadlines for the implementation of the program were back before January 10, 2021. the reasons for this – the first stage was launched from As a result, the second stage has shown a August 21 to 28. By this time, many tourists have significant increase in bookings under the program, as already vacated in the traditional beach destinations of well as the expansion of the geography of travel of the country. Russian tourists – in addition to traditional destinations, Furthermore, the minimum cost of the tour for a the Russian North – Murmansk, Vologda and refund must be at least 25 thousand rubles (per tourist), Arkhangelsk regions, as well as Karelia-began, to be in and the duration of stay in the resting place – at least 4 special demand. Therefore, it is impossible to state nights. It's is quite expensive for many Russian families. unequivocally that measures for supporting tourism in Such a price is also inadequate for small cities in Russia do not work, many of them have a positive Russia, which are most visited during city breaks, and impact. where the cost of accommodation is less than the However, the measures taken are not enough, amount required for a refund. especially in the coming years of the difficult and painful There were cases when the means of recovery of the industry. Therefore, several non-profit- accommodation raised the price of services for making organizations insist on additional support participation in the program. Many hoteliers and tour measures. Let's consider them in brief. operators were not ready to join the program so In Russia, some public and professional promptly. Hoteliers did not have sites with the possibility organizations suggest for the government and the of online payment; some tour operators were unable to industry itself considering the ways to implement form a liquid product and simply offered for sale the several support measures for the tourism industry and hotel room capacity that the tourist could independently its early recovery: book directly from hoteliers. ▪ Implementation of a special visa policy: the Furthermore, to comply with the terms of the fundamental idea here is the abolition of visas for program, a tourist must have a card of the payment the citizens of developed countries and the service provider "MIR", register it in the program, and exclusion of the current "principle of mutuality", make purchases only through the website and for this purpose, a list of countries has been https://мирпутешествий.рф (bit.do/mirtour). Payment compiled for whose citizens it is advisable to for the tourist product must be made immediately, in abolish visas unilaterally – for example, Australia, one payment, which also makes difficulties for tourists. Austria, Belgium, Bulgaria, Canada, Denmark, Not all tourists were ready to buy tours in such a Germany, Spain, Norway, Poland, Slovakia, the short time and go on holiday during the inter-season United States, France, Sweden, etc.). Such a step time. Many holiday centers could not take part in the will allow increasing the tourist flow by simplifying campaign, as they do not host tourists from October to visa formalities for the citizens of "traveling" December. The program has not been joined by the countries and to attract them to Russia. "aggregators", that accumulate about 30% of means of

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▪ Measures for supporting the hotel business: it is improvement of building surrounding grounds by proposed to improve the quality of hotel services, residents and tenants. increase competition and maximally deregulate the industry, as well as introduce three-year tax ▪ Measures for supporting the foodservice sector: it holidays for newly opened enterprises of the hotel is proposed to immediately activate the business with a staff of fewer than 20 people, "regulatory guillotine" mechanism, which involves private entrepreneurs and individuals receiving the abolition of several laws and regulations that incomes from short-term rental of residential regulate the industry in excess. It is also proposed accommodations, as well as the enterprises of the to duplicate the menu hotel business and private entrepreneurs carrying out the short-term rental of residential ▪ in restaurants in English and provide the staff with accommodations with a turnover of fewer than 1 the opportunity to take basic English language million rubles per year – exempt from all taxes, courses on a non-repayable basis. except PIT and insurance premiums. It is also proposed to expand the audience of hoteliers at Within five years these measures can help to the expense of motivated citizens, renting or increase the contribution of the tourism industry to the transferring rooms to them for a symbolic price Russian economy from 3% to 11% of GDP. But there with the obligation to maintain and develop the are no exact guarantees and calculations of their rooms as an object of the hotel business in return. effectiveness yet. Such practice can also be applied to the preservation and monetization of material 6 MAIN TRENDS AND PROSPECTS OF THE historical and cultural heritage. TOURISM INDUSTRY IN RUSSIA AND IN THE WORLD ▪ Measures for supporting transport infrastructure: it is possible to introduce an "open The analysis of industry trends in recent years skies" regime for all regional airports with (table 2), shows that some destinations and types of passenger traffic of fewer than 5 million people a tourist activities are repeated in one form or another, year, and later on for all airports in the country. It and new interests often appear. But the main trend is is also proposed to ensure transport accessibility the individualization of tourism. At the same time, this of natural tourist attractions. trend manifested itself in the pre-Covid period and became significantly sharp during the COVID-19 ▪ Consolidation and strengthening of national pandemic. It is obvious that in the post-Covid period, identity: it is proposed to introduce a moratorium mass tourism will not be able to revive in the same on the demolition of residential constructions built volume, giving up the lead to forms and types of earlier than 1940, irrespective of the presence of individual tourism. This, of course, will lead to a the status of architectural heritage object, the significant increase in the cost of tourist services and establishment of design codes in large inhabited their certain elitism. localities, and the minimization of barriers to the Table 2 – Tourist trends of recent years. 2018 2019 2020–2021 • Gastronomy tourism • Social networks and travel planning • Gastronomy tourism • Purpose of the trip is personal • There is a growing demand for eco- and • Travel with benefit achievements. educational tours • Travel with a goal • Single parent travel with children. • Impressions are on the front burner • Holidays with grandchildren • Journey of several generations • Tourists are increasingly looking for new • Travel without haste • Extreme gives way to exotic impressions and experiences on their trips • On the way with your favorite impressions • Deluxe level visits in a new way pet • Communication between the guests • Individual travel programs • Technology to assist you • Focus on group travels • There is a growing demand for immersion • Undertourism: underground • Immersion in local culture in local culture tourism • Rise in popularity of cruises • Trend for walking tours • Ecotourism • Development of unknown directions • Tourists will rush to new places • Travel to unheralded places • Two-in-one – work and travel • Sense of adventure is still strong • Micro vacation close to home • Solo tourism • Sightseeing and sightseeing tours remain the most popular tourist services Source: based on Gunare & Afanasiev (2020).

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Our study of public opinion using a method of mask mode and distance, cafes and restaurants random statistical sampling through a survey of 300 worked in the ordinary course. At the same time, there people on the social network Facebook during the was no significant increase in the COVID-19 sickness period of isolation showed that up to 75% of rate during this period. respondents are pleased with the idea of new However, the popularity of foreign outbound upcoming trips, and about 40% note that they began to tourism will not decrease contrary to many forecasts. appreciate more the opportunity to travel. It's evidenced by some trends that can already be seen However, within 12 months after the lifting of today. On the whole, the summer season of 2020 restrictions, the respondents plan to make showed that Russian tourists are ready to rest even approximately the same number of trips within the with the threat of coronavirus, and will "rush" in any country and abroad as during the previous pandemic of direction as soon as the road and borders are open. the same duration. Thus, the island of Zanzibar in Tanzania little- At the same time, more than 50% of the study known previously among the tourists is a good example participants note an increased desire to see the world, of this-now there is an unprecedented phenomenon of and about 60% say that they want to catch up the overbooking on the island thanks to Russian tourists: unseized tourist opportunities of 2020 in the coming as of the beginning of December 2020, in terms of 2021, and plan to travel even more in the future. tourist flow, Russian tourists in Zanzibar took the 2nd However, for more than 80% of respondents, the place (16.1% of all tourists on the island), giving way prospects of restrictions on the ability to travel within only to the French (17% of tourists on the island). their country in 2021 are very frightening, and for 48% However, the situation with "closed" destinations – the threat of border closure and the possibility of for Russians will continue to affect tourism negatively – leaving the country for tourist purposes. this situation makes the entire market nervous, and Domestic travel is going to be the main trend in tourists – postpone a possible trip for an indefinite 2020 and the future of 2021 in the Russian tourism future. industry. The people exhausted of the long-term self- The owners of their real estate in resort areas – isolation regime started making short weekend trips in their own houses, apartments, time shares -may stand June-August 2020 on a mass scale. Under the current to gain in some way. They can use direct or subsequent situation, Russians prefer a car to a plane – you can regular flights to visit their properties. On a mass scale, use it spontaneously to leave the city alone or in a small the ordinary tourists won't be let go abroad from Russia company. soon upon the pretext of ensuring quarantine Consequently, such tourist places as Suzdal, measures. Mandatory testing for coronavirus and talks Yaroslavl, Vladimir and others are going to become about introducing the mandatory vaccination for relevant shortly which were suggested but delayed for admission to flights, do not increase the attractiveness a long time. There is also a boom in city excursions for of tourism. PCR tests are already required to enter residents – excursion author's projects have never many destinations and the most important thing-to been in such a demand for their services before. return to Russia. The authorities may impose similar Travelers prefer more economical options instead requirements for Russian hotels in the most popular of hotels – for example, apartment complexes or destinations, especially if the situation with the apartments where you can cook food without any need coronavirus does not improve. to visit cafes or restaurants, and there is also an And ultimately, for almost a year of coronavirus increasing demand and interest in glamping, the restrictions (one year will be in March 2021) have pretty number of which is growing at an exponential rate all well drained the financial "reserves" of both potential over the country. tourists and travel agencies. This is fraught with further The Russian travel business is already placing its impoverishment of potential clients, as well as gradual stake on individual travel and travel in small groups. "self-liquidating" in the travel market – the mass Travelers will likely move away from using public withdrawal of business from tourism is already in high transport and large tourist buses. It is expected demand gear, as evidenced by the mass self-liquidating of for car travel and small bus travels (no more than 15- Russian tour operators: within 11 months, 229 17 people). companies engaged in outbound tourism were Tourists will seek to stay in small hotels, where it removed from the Federal Register of tour operators in will be possible to distance themselves from a large Russia, which defines all working tour operators, and number of people (although the operating experience participation in which is very expensive. At the end of of the popular beach destinations in Russia in the November 2020, only 437 companies remained in the summer of 2020 refutes this assumption – many tourist register of outbound tour operators, whereas 5 years centres were crowded, airports did not observe the ago this list contained about 2.5 thousand tour

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TOURISM INDUSTRY IN RUSSIA AND GLOBAL COVID-19 PANDEMIC: THREATS, COUNTERACTIONS, TRENDS Oleg E. Afanasiev & Alexandra V. Afanasieva operators. In 2021 the situation will only get worse if the be seen how this process will take place, and what same conditions go on. changes are expected in the tourism market in the near future. 7 CONCLUSIONS

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______Processo Editorial / Editorial Process / Proceso Editorial Editor Chefe / Editor-in-chief / Editor Jefe: PhD Thiago D. Pimentel (UFJF). Editores Convidados / Guest Editors / Editores Invitados: PhD Subhash K. B. Pillai (Goa University), PhD Sharad K. Kulshreshtha (North-Eastern Hill University, India) & PhD Maximiliano Korstanje (Palermo University, Argentina). Recebido/Received: 26.08.2020; Revisado/Revised: 10.10.2020; Aprovado/Approved: 28.01. 2020; Publicado/Published: 08.02.2021. Seção revisada às cegas por pares / Double-blind peer review section / Sessión revisada por pares ciegos.

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